Radio România Internațional

Tag: World Bank

  • Economic Forecasts

    Economic Forecasts

    Just like most European Union Member
    States, Romania has reported a significant economic growth for 2017 and is
    anticipating similar results for 2018. Our country has all the more reason to
    feel proud, as there is a wide percentage gap separating it from the other
    Member States. Take France, for instance, whose GDP last year hit its highest
    level in the last six years, standing at merely 1.9%. Romania on the other hand
    had a 6% growth rate, which made France Press news agency label it as Europe’s
    tiger.

    On Sunday, the National Forecast Commission made public its
    predictions for 2018, upgrading to 6.1% its GDP growth forecast. At the same
    time the Commission maintained its forecast for 2019 and 2020 at 5.7% and at 5%
    for 2021. Although positive, the forecasts of Romania’s external partners are
    less optimistic. The European Commission expects Romania’s economic growth to
    stand at 4.4% in 2018, which mirrors the latest forecast of the International
    Monetary Fund. The World Bank estimates a 4.5% GDP growth rate, whereas the
    European Bank for Reconstruction and Development estimates a growth rate of
    4.2%.

    Yet what makes Romanian economy so competitive? What is the secret behind
    this success, in a country facing severe labour shortage, rising migration and
    waning demographics? While the repeated Governments of the ruling coalition in
    Romania, made up of the Social-Democratic Party and the Alliance of Liberals
    and Democrats, have taken credit for Romania’s bolstering growth in 2017,
    Romanian citizens themselves are more likely to have contributed to this
    phenomenon, by increasing consumption.

    Both economic pundits and Central Bank
    experts agree that Romania’s growth rate is likely to slow down in 2018,
    evidence of which can be found in the latest forecasts by international
    financial institutions. It’s unlikely, experts argue, that the authorities will
    be able to uphold the current growth parameters, given that this was the effect
    of salary increases. In a recent report, a commercial bank in Romania points
    out that the recent fiscal uncertainty and populist measures have kept
    investments away.

    Moreover, should the Government resort to additional tax
    increases and cuts in public spending so as to observe the 3% budget deficit
    target, this might further slow down economic growth. As for the industrial
    output, it is expected to go up due to the rising demand on European markets.
    Still, imports are expected to rise faster than exports, as they cover a large
    part of the domestic demand. Therefore the coming years might prove relatively
    difficult for the Romanian economy, and the tiger might turn out to be yet
    another bubble.



  • December 13, 2017

    December 13, 2017

    KING MICHAEL I – The coffin carrying the body of the late Romanian King Michael I was flown to Romania from Switzerland on Wednesday, ahead of his funeral this weekend. A military plane transported the coffin, covered in the royal coat of arms. At the airport in Bucharest flags were flown at half-mast and Orthodox priests performed a religious service in the presence of King Michael’s five daughters. The coffin was then taken to Peles Castle in the mountain resort of Sinaia, the birthplace of King Michael I. The road was lined with people who wanted to say good-bye to their last King as the cortège travelled to Sinaia. Romanian and Moldovan officials are expected to pay their respects at the Peles Castle. Later this evening, the coffin will be brought to the Royal Palace in Bucharest, where people can pay their respects. King Michael I will be buried with state honours on Saturday, December 16 at Curtea de Arges, where all Romanian kings were interred. King Michael, who died in Switzerland on December 5th, aged 96, was forced to abdicate and leave the country in 1947, when Romania was ruled by a Soviet puppet government and was under Soviet military occupation.




    LAWS — The amendments to the justice laws regarding judicial organisation and the functioning of the Higher Council of Magistracy are today debated and voted on by the Chamber of Deputies in Bucharest, only two days after the magistrates’ new status was endorsed. It was decided that the Judicial Inspection be further subordinated to the Higher Council of Magistracy, although the ruling coalition initially proposed that it should be an autonomous body. Also, the special parliamentary committee in charge of amending the laws in the judicial sector has decided to set up a special department for the investigation of crimes in the justice system. The amendments to the justice laws have come to the attention of the Council of Europe, that has called on Romania to offer clarifications on the controversial draft laws, after the Group of States against Corruption (GRECO) has for the first time activated a procedure for exceptional circumstances in this case.




    BUDGET BILL – The 2018 state and social security bills are being debated in the joint budget and finance committees of Romania’s Parliament, with the final vote on the bills scheduled for December 21. The budget for 2018 was based on a 5.5% economic growth rate, a 3.1% inflation rate, an average exchange rate of 4.55 lei for the Euro and an increase in the average number of employees by 4.2%. Healthcare, education and investments are the priorities of the government in Bucharest if we look at the amount of funds these areas have been allocated in the 2018 budget bill. The budget bill is contested by the Opposition that has filed almost 4 thousand amendments to it.




    PROTEST — The Romanian Confederation of Authorised Transporters and Operators has suspended the protests announced for today in Bucharest and other Romanian cities. Early this week, the confederation announced that 35 thousand transporters will protest against piracy and fiscal evasion but its representatives have stated that all their demands have been met. They say that road transport accounts for 4.7% of the GDP every year but argue that state authorities tolerate piracy so that the number of illegal transporters is almost equal to that of legal ones.




    WORLD BANK – The World Bank will end its financial support for oil and gas exploration within the next two years in response to the growing threat posed by climate change. After 2019, the WBG — which includes the World Bank and three other institutions — will stop investing in upstream oil and gas, according to an announcement made at the One Planet Summit in Paris on Wednesday. The World Bank said it will continue to lend “in exceptional circumstance” but only in the very poorest countries and if the project does not conflict with the 2015 Paris climate change accord. French president Emmanuel Macron hosted the summit attended by 164 world leaders, government members, business leaders and prominent figures.


    (Translated by Elena Enache)












  • December 12, 2017 UPDATE

    December 12, 2017 UPDATE

    King Michael – King Michaels body will be brought from Lausanne to Romania on Wednesday. The former sovereign died on December 5, at the age of 96, in Switzerland. On Monday Romanias Parliament convened in solemn session to pay tribute to King Michael I. Attending the ceremony were President Klaus Iohannis, Princess Margareta, the Custodian of the Crown of Romania, the former presidents of Romania Emil Constantinescu and Traian Basescu, the PM Mihai Tudose, the speakers of the Senate and Chamber of Deputies, Călin Popescu-Tăriceanu and Liviu Dragnea, and the Patriarch of the Romanian Orthodox Church, Daniel. The Romanian authorities have declared December 14, 15 and 16 days of national mourning. King Michael I will be buried on Saturday, December 16 with state honours at Curtea de Arges, where all Romanian kings have been interred.





    World Bank – The President of Romania Klaus Iohannis received in Bucharest on Tuesday a World Bank delegation headed by the vice-president for Europe and Central Asia, Cyril Muller. During the talks, the participants discussed the need to carry on structural reforms in order to strengthen Romanias chances of sustainable economic development. In this respect, the transport infrastructure should be viewed as a top priority of public investments. According to the Presidency, the agenda of the meeting also included the issue of education, on which occasion the head of state stressed the importance of this sector and the need to improve it. The participants also looked at the recent economic developments in Romania, emphasising the need for responsible policies in this field, so that the taxation and budget framework may ensure predictability and stability for the business environment and also that it may cope with prospective risks.





    PROTESTS – The National Union Bloc (BNS), one of the largest trade union organisations in Romania, organised a rally in Bucharest on Tuesday to protest the measures introduced by the new Fiscal Code, particularly the transfer of social security payment obligations from employers to employees as of January 1, 2018. The unionists sought to warn the Government against the negative short, medium and long-term effects generated by this transfer. The National Union Bloc believes the rights of workers to be threatened, and the chances for employment relations based on respect to worsen. The new tax code measures have also been criticised by other trade unions, by the business community and the right-of-centre opposition.




    NATO – The 29 NATO member states Tuesday decided to extend Jens Stoltenbergs term in office as secretary general of the organisation until September 30, 2020. A former prime-minister of Norway, Jens Stoltenberg has been the NATO secretary general since October 1, 2014. He was originally elected for 4 years, replacing Anders Fogh Rasmussen of Denmark. Romania has been a NATO member since 2004.


    (translated by: Ana-Maria Popescu)

  • October 21, 2017 UPDATE

    October 21, 2017 UPDATE

    Catalonia — Head of the Spanish Government, Mariano Rajoy, announced on Saturday that regional elections will be staged in Catalonia within the next six months, to return to what he called “normality”. The Council of Ministers in Madrid decided on Saturday in an emergency meeting, that the powers of the Catalan administration would be transferred to the central government. Also, the Council called on the Senate to authorise the ousting of the separatist leader Carles Puigdemont and his government and to dissolve Catalonia’s Parliament. Spain’s upper house of parliament is scheduled to vote on the plan next Friday. Previously, Puigdemont threatened to make a formal declaration of independence unless the government agreed to a dialogue. Catalan authorities said about 90 percent of those who voted in the referendum on Oct. 1 opted for independence. But only 43 percent of the electorate participated, with opponents of secession mostly staying at home.




    Bill – Romanian Minister of Public Consultation and Social Dialogue, Gabriel Petrea, said on Saturday that the new version of the social dialogue law is almost ready. The law is to be submitted to Parliament for approval and enter into force starting next year. Minister Petrea announced that the last meeting this year between trade union confederations and employers’ associations representative at national level would be held on Monday.




    Attack — A Romanian citizen is among the people injured in Munich, Germany on Saturday, by a man who carried a knife, the Romanian Foreign Ministry announced. The Romanian citizen has been slightly injured and did not need to be hospitalised. As many as five people were injured in the attack and a suspect was detained by the special forces.




    ECONOMY –Romanian economy might grow more than estimated in 2017 and 2018, according to a World Bank report. The GDP could go up by 5.5% this year, due to fiscal stimulation measures and improved results of the European economy. Increased consumption will trigger, however, an increase in the current account deficit and inflation. The report also shows that Romania’s GDP will go up by 4.1% in 2018 and by 3.6% in 2019. The World Bank has warned, however that increased fiscal pressure and excessive domestic demand make Romanian economy more vulnerable to shocks.




    SUMMIT — Brexit and migration were the main topics discussed at the recent Brussels summit. After two days of talks, the European leaders are united and determined to go forward with optimism, as they want to create ‘a better Union closer to the citizen.’ As for the Brexit negotiations, Romanian President Klaus Iohannis, who represented Romania at the summit, said that the progress made is insufficient. The Brussels meeting also included talks on migration, a phenomenon that the EU continues to deal with and which has decreased. Iohannis announced that Romania had decided together with the countries participating in the summit to back the Nuclear Agreement with Iran. The EU’s digital agenda, security and defence, the EU’s relations with Turkey and North Korea’s nuclear programme were also discussed during the summit.




    TENNIS — Romanian tennis player Simona Halep, number one in the world, will be up against French player Carolia Garcia, WTA’s 9th seed in the WTA Finals in Singapore, which brings together the eight best players of the year. Halep, aged 26, who has recently become the world’s best player is also the first Romanian player to achieve this historic milestone since the computer rankings were introduced in 1975, being the 25th woman to hold the no. 1 ranking. Her rise to the first sport brings to an end the reign of Spain’s Garbiñe Muguruza, who spent four weeks in the top position. Halep entered the Top 10 for the first time on January 27, 2014, and has been there ever since. (Translated by Elena Enache)




  • June 5, 2017 UPDATE

    June 5, 2017 UPDATE

    HOLIDAY Christians, including from Romania, a country with an Orthodox majority, on Monday were celebrating the second day of Pentecost — the Descent of the Holy Spirit upon the apostles of Jesus Christ. The New Testament book of Acts describes the moment we celebrated on Monday. The 12 apostles were together in Jerusalim fifty days after Jesus’ Ressurection and ten days after his Ascension. At a certain moment, wind started to blow in the room the apostles were in, a noise was heard after which they began speaking in foreign languages, languages they didn’t know before. Small flames of fire were hovering above their heads. Peter explained that it was the Holy Spirit that enabled them to speak in tongues. Following Peter’s sermon on that day three thousand people came to Christ, making the first Christian community, the nucleus of the future Church.



    AWARD Romania’s president Klaus Iohannis is these days paying a formal visit to the United States, during which he will be received by his American counterpart Donald Trump at the White House. According to our correspondent in Washington, Iohannis is the first leader from Central and Eastern Europe to be received by the US president since the latter took office. Talks will be focusing on strengthening the bilateral relations and the Strategic Partnership Romania is having with the USA for the past 20 years. Iohannis’ agenda also includes participation in the Global Forum of the prestigious American Jewish Committee. On this occasion AJC is expected to honour the Romanian president with its highest award, ‘Light Unto the Nations’, given to heads of state and government in recognition of their international impact in fields like peace, security, democracy and promoting human values. The Romanian official’s agenda also includes a meeting with the Romanians living in the USA.



    TENNIS The world’s fourth tennis player, Romanian Simona Halep has qualified for the quarterfinals of the Roland Garros tournament, the year’s second Grand Slam, after a two-set win 6-1, 6-1 against Carla Suarez Navarro of Spain. In the quarterfinals, Simona, the competition’s third favourite, will be playing Ukrainian Elina Svitolina, WTA no. 6. Svitolina comes after a win against Petra Martici of Croatia, 4-6, 6-3, 7-5. In the women’s doubles, Romanian Raluca Olaru and Ukrainian Olga Savchuk have also qualified for the quarters where they will be up against Yung-Jan of Taiwan and Martina Hingis of Switzerland. The pair made up of Romanian Irina Begu and Chinese Saisai Zheng will be playing the winners of the game pitching Australians Ashleigh Barty and Casey Dellacqua against Daria Gavrilova of Australia and Anastasia Pavlyuchenkova of Russia.



    ECONOMY Romania’s economy will register a growth rate of 4.4% as compared to the one of 3.7% envisaged in January, the World Bank announced in its Global Economy Prospects on Monday. The same institution has revised up it prospects for 2018 and 2019 when Romania’s GDP is expected to grow by 3.7% and 3.5% respectively. Although fiscal relaxation has a lower contribution to economic growth it will put pressure on public and external deficits, the document also shows. We recall that in the first quarter of 2017, Romania reported the EU’s highest growth rate 5.7% thanks to rising consumption. A slight budget surplus was also reported in late April.



    ATTACK Jihadi group the Islamic State has claimed responsibility for the attack on Saturday night in London when 7 people were killed and scores wounded. Police have detained several people including women in a sting operation in eastern London. The Romanian Foreign Ministry has extended condolences to the victims’ families, firmly condemning the attack. In turn, Romania’s president Klaus Iohannis has joined the Western leaders in firmly condemning the London attack. We recall that on Saturday night three assailants drove their van into pedestrians on London Bridge and started stabbing people randomly before being shot dead by the police. The attack took place five days before the early election in the UK and the election campaign has been suspended for the second time for the same reason, terrorism. Britain has seen three terror attacks in the past three months; 34 people have been killed and hundreds wounded.



    TIFF The 16th edition of the Transylvania International Film Festival is underway in Cluj Napoca, northwestern Romania. On Monday films related to cooking were screened and visitors were also given the occasion to taste dishes prepared by famous chefs invited to attend the festival. 12 movies are vying for the first prize during the festival, which is also to see the screening of 255 films from 53 countries. Over 12 hundred invitees from Romania and abroad are participating in the screening, the concerts, workshops, debates and film-launching ceremonies at Romania’s most important film festival. We recall that Radio Romania is a partner of this prestigious event, which will also be attended by famous French film star Alain Delon, at his first presence in Romania.



    CONFERENCE Migration is one of the factors that can have the biggest influence upon the security architecture, against the complex background of the threats it is currently facing, Romanian Minister for European Affairs, Ana Birchall has said. From Monday until Thursday, the Romanian official will be attending the conference ”International Migration and Global Security” staged in Garmisch Partenkirchen jointly by the governments of the United States and Germany and which brings together more than 80 experts and governmental representatives from 45 countries in Europe, Asia, the Pacific area, Middle East and Africa. High on the conference’s agenda are the prospects of global migration, the future of global security and sustainable solutions the international community should come up with to properly meet this challenge.


  • 22 November, 2016

    22 November, 2016

    Economic
    growth.     The World Bank has improved its forecast with regard to Romania’s
    economic growth rate in 2016 to 5.1% from a previous June estimate of 4%,
    according to its economic report for Europe and Central Asia published today.
    The World Bank warns, however, that the growth seen by the Romanian economy
    this year will slow down to 3.8% in 2017 and 3.4% in 2018. The consolidated
    budget deficit is expected to grow, nearing 3% of the GDP, both in 2016 and
    2017, from 1.5% in 2015, which will lead to an increase in public debt. The
    Romanian government will have to keep in check current spending pressures and
    improve tax efficiency to prevent the activation of the excessive deficit
    procedure. The International Monetary Fund has also recently estimated that
    Romania will see the highest economic growth rate in Europe, with 5%, followed
    by Ireland with 4.9%. At the beginning of the month, the European Commission
    revised its economic growth forecast for the Romanian economy this year up to
    5.2%.




    Protests. Public employees from around the country have
    staged protests today demanding salary rises. They are unhappy that a
    government ordinance on a unitary salary scheme for the public sector has not
    been implemented and warn this is only the first step before an all-out strike.
    Police officers have also taken to the street to protest against the pension law,
    while the members of the Sanitas trade union have picketed the headquarters of
    the healthcare ministry in solidarity with their colleagues negotiating the
    collective employment contract.




    Anticorruption. The permanent bureau of the
    Chamber of Deputies in Bucharest today discusses a request by the National
    Anticorruption Directorate to begin criminal investigations against MP Eugen
    Bejinariu as part of the Microsoft 2 case. Bejinariu served as a government
    secretary general in the 2003-2004 period and is investigated for aggravated
    abuse of office at the time. The Microsoft 2 case, which led to losses of tens
    of millions of euros, refers to the rental of licences for schools starting in
    2004.




    Visit.
    Romania’s foreign minister Lazar Comanescu is in Rome for talks with his
    Italian counterpart Paolo Gentiloni about the future of Europe after Brexit,
    migration, the enlargement of the European Union and the Western Balkans. Also
    today, Comanescu makes a visit to the Vatican and meets Romanian youth studying
    in Rome.




    Military drills.
    30 military from the Romanian Land Forces are taking part in the Iron Sword 16
    multinational exercise under way in Lithuania starting today until the 3rd
    of December. Around 2,000 troops from Canada, Estonia, Germany, Lithuania,
    Latvia, the UK, Poland, Romania and the US will be carrying out tactical drills
    involving all types of weapons and using NATO techniques, tactics and
    procedures. Iron Sword 16 forms part of the Black Sea Rotational Force 16
    multinational exercise and aims to increase the level of interoperability
    through joint training with a view to taking part in peace keeping and
    counter-insurgence operations.




    Defence industry law. Romania’s president Klaus Iohannis
    has signed a decree to promulgate the law regulating the national defence
    industry that was passed last month by the Senate, the decision-making body in
    this case. The law regulates the organisation of the defence sector into
    different strategic areas, aiming to enhance its competitiveness and diversify
    its products, as well as the sector’s participation in European defence
    industry activities.




    Warning.
    The US State Department on Monday warned American citizens of increased danger
    of terrorist attacks in Europe over the winter holidays. The State Department
    said there is credible information indicating that terrorist organisations
    such as the Islamic State and al-Qaeda and their affiliates continue to plan
    such attacks. The travel alert issued by Washington also recalls the terrorist
    attacks committed this year in Belgium, France, Germany and Turkey.




    Medal.
    After 8 years, the Romanian wrestler Gheorghita Stefan will receive the bronze
    medal for the 2008 Olympic Games in Beijing, as the Uzbekistan wrestler Soslan
    Tigiev, who had defeated him, was stripped of his medal, having failed a drug
    test, the International Wrestling Federation has announced. Stefan was defeated
    by Tigiev in the eighthfinals of the 74 kg category in the men’s freestyle
    wrestling and again by the Belarussian wrestler Murad Gaidarov in the fight for
    the bronze medal. According to the new ranking, the Russian wrestler Buvaisar
    Saitiev keeps his gold medal, Gaidarov wins the silver, while the Romanian
    wrestler Gheorghita Stefan and the Bulgarian wrestler Kiril Terziev win the
    bronze. Romania’s medal tally for the Beijing Games now numbers 4 gold medals,
    1 silver and 4 bronze. (Trans. by: C. Mateescu)

  • November 1, 2016

    November 1, 2016

    PERFORMANCE Romania is still seeing low performances and incomplete processes, Romanian president Klaus Iohannis has today said in Bucharest during ceremonies marking 25 years of partnership with the World Bank. According to Iohannis, Romania could make a better use of the assistance provided by international institutions such as the World Bank. The WB-Romania partnership is the expression of a wide-range cooperation in various social and economic fields; it also reflects the complex evolution of the WB’s role in Romania’s reform agenda, Iohannis added. According to the Romanian head of state, ongoing reforms are essential for sustainable development and economic growth. Iohannis has also pointed out that reforms in public and fiscal administration are among Romania’s key priorities.



    RADIO Radio Romania today celebrates 88 years of existence. November 1st 1928 saw the first broadcast aired by the Society of Radio-Telephonic Broadcasting, as the public radio corporation was named back then. 88 years ago, Romanians were able to hear for the first time in speakers, ‘Hello, hello, this is Bucharest Calling’. Since its early days, the public radio has been a promoter and supporter of Romanian culture and civilization a major vector in forging civic spirit and community cohesion. The institution’s name has changed many times along its existence, sometimes under the pressure exerted by various political regimes that ruled Romania at certain times in history. The Romanian Radio Broadcasting Corporation is presently a structure with three national channels and several regional ones, including an international channel broadcasting in ten languages (Arabic, Chinese, English, French, German, Italian, Serbian, Spanish, Russian and Ukrainian) as well as in Romanian and the Aromanian dialect. As every year, the Sala Radio (Radio Hall) in Bucharest has seen an anniversary concert while the institution has hosted the Open Doors Day, allowing listeners to visit its studios and see the activities going on there.



    DRILL Over November 1st and 12th Romanian troops are participating together with their US allies in Patriot Shock V, a joint drill held at the Capul Midia Shooting Range in Constanta, southeastern Romania. According to sources with the Romanian Defence Ministry, Patriot Shock V is a joint drill of tactical level involving ground troops and surface-to-air missile installations. The drill’s objectives are planning and fighting air strikes as well as checking on the inter-operability of command-control units of the two surface-to-air structures, Patriot and Hawk PIP lll.



    QUAKE Italy has again been rocked by an earthquake, measuring 4.7 degrees on the Richter scale. The quake’s epicenter was in Macerata, the same region that saw the devastating quake in August this year. Another 130 aftershocks of the Sunday’s earthquake were reported during the night. 40 thousand people have been left without shelter after the earthquakes of the past days, including 200 Romanian citizens. A mobile team of the Romanian embassy on Monday has been deployed to the affected region. There are no Romanian citizens in hospitals and most of those who cannot return to their homes have been offered accommodation in hotels in the Umbria region. According to a communiqué by the Foreign Ministry in Bucharest, four Romanians have asked for repatriation assistance. The Romanian embassy has also called on the Italian authorities to investigate the case of a Romanian who died 24 hours after Sunday’s earthquake.



    MEASURES Romanian Prime Minister Dacian Ciolos believes the measures adopted by Parliament in the past months concerning pay rises in various sectors of the economy, amounting to 2 billion lei, over 1% of the GDP, might impact the budget significantly; they could either result in a swollen deficit, which might prove disastrous for Romania, or in curbed investment. Ciolos said that such pay rises are causing more imbalances in the employees’ treatment without solving the payment issue altogether. The Prime Minister’s statements came after MPs in the assembled labour & budget commissions on Monday had endorsed several pay rises for some categories of employees in the country’s healthcare system and education. Both the Labor Minister and the Finance Minister have voted against the measures. Labour Minister Dragos Paslaru has described the measures as having only an election purpose.


  • January 13, 2016 UPDATE

    January 13, 2016 UPDATE

    ECONOMY– World Bank representatives are optimistic about Romanias economic performance but they warn however that some potential risks must not be neglected. A delegation of the World Bank, led by the Regional Vice-President for Europe and Central Asia, Cyril Muller, was received in Bucharest on Wednesday by Romanias President Klaus Iohannis. During the talks, the economic experts reiterated the WBs interest in further supporting economic and institutional reforms meant to boost Romanias development in the long run. These reforms are mainly destined for the sector of state enterprises and are also aimed at improving corporatist governance as well as at developing and modernising key sectors, such as transports. The meeting was held just days after the technocratic cabinet in Bucharest and the World Bank signed a new memorandum under which the World Bank grants technical assistance to Romanian public institutions until 2023. Thanks to a first memorandum, some 20 public institutions benefited from over 30 million Euro worth of funding, between 2012 and 2015.



    CHILD WELFARE – The Romanian Ambassador to Oslo has held talks at the Norwegian Foreign Ministry, where he has underlined the Norwegian authorities taking into custody five children of a mixed Romanian-Norwegian family, with residence in Norway, is a social case with a huge emotional and media impact. He made the proposal to the Norwegian side to start political cooperation with the relevant Romanian authorities in order to manage the case, the spokesperson for the Romanian Foreign Ministry, Raluca Lunculescu, announced on Wednesday. She added that law observance and the familys sensibility had been taken into consideration before starting any form of public communication on the case. Earlier, the Norwegian Embassy in Bucharest explained that an order of foster care placement is issued only when the child has been severely neglected, maltreated or abused. Rallies of support for Ruth and Marius Bodnariu have been staged in several cities across Romania and abroad. We recall that the five children of the family, aged between 4 months and 10 years, have been taken into custody by the Norwegian state, for reportedly having been disciplined by their parents. Their father, Marius Bodnariu, of Romanian descent, denounces the move, deeming it an abuse but he admitted to having applied small physical corrections on children. A joint delegation of the Romanian Chamber of Deputies and Senate will pay an official visit to Oslo next week for talks with representatives of the Norwegian Parliament on child protection laws, starting from the Bodnariu case. In turn, President Klaus Iohannis expressed his support for the efforts made by the Romanian Government to assure “the observance of human rights for the Romanian citizens, wherever they may be.



    DIPLOMACY– Romanian Foreign Minister, Lazar Comanescu, on Thursday and Friday will attend the informal meeting on foreign policy and security related issues, Snow Meeting, at the invitation of his counterpart, Linas Linkevicius. According to a communiqué issued by the Romanian Foreign Ministry, the event will bring together decision-makers and experts in foreign policy and security from NATO and EU member states, high ranking officials of the two organisations and academics. Security developments in NATOs eastern and southern neighbourhood, as well as the alliances response to such developments are the focal points of Snow Meeting 2016. Other issues high on the agenda of the meeting are the prospects of the NATO Summit due in Warsaw in July and the stage of implementation of the decisions made at the previous summit held in Great Britain in September 2014.



    STRASBOURG – An employer has the right to monitor the employees online communications during work time, according to a ruling issued by the European Court of Human Rights, following a complaint made by a Romanian engineer who got fired in 2007 for having spent time chatting on the computer during work time. He brought the issue to the European court, saying that by having his private conversations intercepted, his right to privacy was violated. In turn, the employer justified the decision to lay out the engineer for not using the electronic mail for professional purposes, but to communicate with his brother and girl-friend, against the backdrop of internal rules and regulations which forbid employees to use the companys resources for personal use. The man who was made redundant initially brought the issue to a Romanian court, which issued an unfavourable ruling, so he took the case to the European court, to no avail. In the ruling it issued, the European Court of Human Rights says an employer does not commit an abuse when checking on its employees to see whether or not they accomplish their professional tasks during work hours. Also, the European Court of Human Rights considers that the first Romanian court kept a correct balance between the employers interests and the observance of private correspondence confidentiality, because only transcripts of the conversations attesting to the fact that the employee used the companys computer for his personal interest during work time, have been used in court, and the identity of other people involved in the conversations has not been disclosed.



    MOLDOVA– The President of the Republic of Moldova (a former Soviet state with a predominantly Romanian speaking population), Nicolae Timofti, on Wednesday announced he had rejected the proposal made by the Democratic Party for the position of Prime Minister, namely the controversial businessman Vlad Plahotniuc. Timofti called on the parliamentary majority to come up with a new candidacy and underlined that his rejection of Plahotniuc is based on Constitutional provisions and on rulings issued by the Constitutional Court, which stipulate that the nomination of people suspected of integrity-related issues for leading positions runs counter to the principles of the rule of law. A member of the Democratic Party and backed by a heterogeneous majority, ranging from pro-European Liberals to ex-communists, who are traditionally of pro-Russian orientation, Plahotniuc is described by his opponents as an oligarch who has repeatedly been accused of involvement in illegal activities which mar the image of the Republic of Moldova. If a new government does not get endorsement until January 29, the President will have to dissolve Parliament and call for snap elections.



    SPORTS – Romanian tennis player Simona Halep, WTAs no.2, on Thursday will meet Russian Svetlana Kuznetsova (WTAs no.25) in the semi-finals of the Sydney tournament, with 687,000 dollars prize money up for grabs. Halep has an overall 3-2 lead on the Russian player in the direct matches.


    (Translated and edited by Diana Vijeu)

  • January 12, 2016 UPDATE

    January 12, 2016 UPDATE

    ISTANBUL BLAST– The Romanian Foreign Ministry firmly condemns the terrorist attack carried out in Istanbuls historical district of Sultanahmet on Tuesday, which left dead and wounded. In a press release, the Romanian Foreign Ministry reiterates Romanias solidarity with the Turkish people and its support for the Turkish authorities in the effort to fight terrorism under all its forms. The perpetrator of the suicide bombing which killed over 10 people, among whom nine German nationals, is a Jihadist member of the Islamic State group, said Turkish Prime Minister Ahmet Davutoglu. An emergency government meeting was summoned shortly after the blast, which occurred not far away from the Topkapi Palace and the Blue Mosque, two monuments that are very popular with tourists. According to “CNN Turk, tourists from Germany and Norway are among the injured. Some months ago, a double suicide bombing killed 103 people in front of the central railway station in Ankara. The attack, the severest on Turkish soil ever, was blamed on the Islamic State Jihadist group.



    DIPLOMACY – Romanian Foreign Minister, Lazar Comanescu, paid a visit to Berlin on Tuesday, at the invitation of his German counterpart, Frank-Walter Steinmeier. The talks focused on bilateral relations as well as on issues of topical interest on the European, regional and international agenda. One of the focal points of the talks was the cooperation between Bucharest and Berlin in the context in which Germany is holding the presidency of the OSCE this year. Lazar Comanescu underlined Germanys importance as an economic engine at European level and as a partner of Romania. Over 20% of Romanias foreign trade is bound for Germany and the Romanian-German trade balance is reasonably balanced, the Romanian Foreign Minister said. Over 20,000 companies running on German capital operate in Romania at present, employing over 300,000 people.



    NEW IMF MISSION CHIEF FOR ROMANIA – The new head of the IMF mission to Romania, the Pakistani Reza Baqir, is currently on a four-day visit to Bucharest, as of today, to meet the Romanian authorities. He replaces Andrea Schaechter, who completed her two and a half year term in office. Reza Baqir has been working with the IMF for 15 years, and was previously employed by the World Bank. At present Romania does not have an on-going agreement with the IMF. The latest accord came to an end in September 2015, after several failed attempts to reconcile the divergent views of the Romanian authorities and the international financial institution with respect to the fiscal relaxation promoted by Bucharest. Meanwhile, on Monday Romania signed a new memorandum with the World Bank, concerning the improvement of public administration efficiency. Under the new deal, WB will continue to provide technical assistance to Romanian public institutions until 2023 and will support the Government in enforcing structural reforms and public administration modernisation programmes.



    MOLDOVA – The leader of the Democratic Party in the Republic of Moldova, Marian Lupu, announced, after consultations with President Nicolae Timofti, the formation of a new parliamentary majority which could get a new cabinet endorsed. According to Lupu, the new coalition includes 56 out of the total 101 MPs: Democrats, Liberals, some members of the Liberal-Democrat floor group, which was part of the former pro-Western government coalition, as well as the 14 ex-Communist MPs who created a so-called Social Democratic Platform. Until Wednesday, Lupu said, this majority would also nominate a new candidate for the PM post. Moldovan media quoted by Radio Romania correspondents suggest this might be Vlad Plahotniuc, a controversial businessman and the one who finances the Democratic Party. Unless a new cabinet is sworn in by January 29, President Timofti will have to dissolve Parliament and call snap elections. The governmental crisis started in autumn, when the three-party government headed by the Liberal Democrat Valeriu Strelet was dismissed under a no-confidence motion tabled by the pro-Moscow left wing and backed by the Democrats.



    COUNTER-TERRORISM – The global counter-terrorism forum and the international coalition against the IS group convened on Monday for the first time, in the Hague, to coordinate efforts to fight terrorism. Officials from 50 countries concluded at the Europol meeting, initiated and chaired by the Netherlands, that fighting terrorism does not require new structures, but rather the implementation of all agreements and improved cooperation. The issue of young people recruited by terrorist groups into Syria and Iraq was also discussed. Countries are urged to step up and strengthen intelligence sharing concerning such youth. The Dutch Foreign Minister, Bert Koenders, emphasised that the efforts to counter terrorism must stay within the limits of both legal and moral principles.


    (Translated and edited by Diana Vijeu)

  • January 12, 2016

    January 12, 2016

    DIPLOMACY – The Romanian Foreign Minister, Lazăr Comănescu, is on a visit to Berlin today, at the invitation of his counterpart, Frank-Walter Steinmeier. The talks will focus on the bilateral relation and major issues on the European, regional and international agenda. One topic will be the cooperation between Bucharest and Berlin, in the context of Germany holding the presidency of the Organisation for Security and Cooperation in Europe this year. Lazăr Comănescu stressed the importance of Germany as an economic engine of Europe and as a partner of Romania. More than 20% of Romanias foreign trade involves Germany, and the trade balance is reasonably balanced, the Romanian Foreign Minister explained. Over 20,000 companies running on German capital operate in Romania at present, employing more than 300,000 people.



    IMF ROMANIA – The new head of the IMF mission in Romania, the Pakistani Reza Baqir, will be on a four-day visit to Bucharest, as of today, to meet the Romanian authorities. He replaces Andrea Schaechter, who completed her two and a half year term in office. Reza Baqir has been working with the IMF for 15 years, and was previously employed by the World Bank. At present Romania does not have an on-going agreement with the IMF. The latest accord came to an end in September 2015, after several failed attempts to reconcile the divergent views of the Romanian authorities and the international financial institution with respect to the fiscal relaxation promoted by Bucharest. Meanwhile, Romania signed yesterday a new memorandum with the World Bank, concerning the improvement of public administration efficiency. Under the new deal, WB will continue to provide technical assistance to Romanian public institutions until 2023 and will support the Government in enforcing structural reforms and public administration modernisation programmes.



    MOLDOVA – The leader of the Democratic Party in the Republic of Moldova, Marian Lupu, announced, after consultations with President Nicolae Timofti, the formation of a new parliamentary majority which could get a new cabinet endorsed. According to Lupu, the new coalition includes 56 out of the total 101 MPs: Democrats, Liberals, some members of the Liberal-Democrat floor group, which was part of the former pro-Western governmental coalition, as well as the 14 ex-Communist MPs who created a so-called Social Democratic Platform. Until Wednesday, Lupu said, this majority would also nominate a new candidate for the PM post. Moldovan media quoted by Radio Romania correspondents suggest this might be Vlad Plahotniuc, a controversial businessman and the one who finances the Democratic Party. Unless a new cabinet is sworn in by January 29, President Timofti will have to dissolve the Parliament and announce snap elections. The governmental crisis started in autumn, when the three-party government headed by the Liberal Democrat Valeriu Strelet was dismissed under a no-confidence motion tabled by the pro-Moscow left wing and backed by the Democrats.



    COUNTER-TERRORISM – The global counter-terrorism forum and the international coalition against the IS group convened yesterday for the first time, in The Hague, to coordinate efforts to fight terrorism. Officials for 50 countries concluded at the Europol meeting initiated and chaired by the Netherlands, that fighting terrorism does not require new structures, but rather the implementation of all agreements and improved cooperation. The issue of young people recruited by terrorist groups into Syria and Iraq was also discussed. Countries are urged to step up and strengthen the sharing of intelligence concerning such youth. The Dutch Foreign Minister, Bert Koenders, emphasised that the efforts to counter terrorism must stay within the limits of both legal and moral principles.



    ISTANBUL BLAST – A powerful blast, suspected by authorities of being a terrorist act, occurred this morning in the Sultanahmet area downtown Istanbul, not far from Topkapî Palace and the Blue Mosque, and killed at least 10 people, Turkish news agencies have reported. Several months ago, a double suicide attack killed 103 people in front of the central railway station in Ankara. That attack, the most serious ever on Turkish territory, was blamed on the IS group.



    SPORTS – Romanias mens water polo team defeated Georgia 12-6, on Monday night, in their first game in Group C of the European Championship in Belgrade. On Wednesday, in the second stage, the national team will take on Italy. Group C also includes Germany. The European Water Polo Championships are a trial for the 2016 Olympics, and the winners secure their tickets to Rio de Janeiro, in August. The top 10 teams in the Euro 2016 Championships will take part in an Olympic qualification tournament.

  • January 11, 2016 UPDATE

    January 11, 2016 UPDATE

    Gheorghe Brega, the interim prime minister of the Republic of Moldova, on Monday conveyed a letter of thanks to the head of the Bucharest Government, Dacian Ciolos, for the assistance that Romania provided in the case of the patients injured in the fire in Chisinau. Three women who suffered severe burns have been transferred to a hospital in Bucharest with an aircraft sent by the Romanian authorities. 20 people have been injured, three of them seriously, after an explosion at a restaurant in the Moldovan capital. Authorities have sealed off the area and an investigation is underway.



    Almost all the men suspected of involvement in mass assaults and muggings on New Years Eve in Cologne are North-African and Arab asylum seekers who have entered Germany in the past few months, an official reports says. Police has been criticised for the way they handled the situation. Also, Chancellor Angela Merkels immigration policy has come under criticism since the attacks.




    Romanian Foreign Minister Lazar Comanescu participated on Monday in a conference launching the Dutch Presidency of the EU Council, organised by the Embassy of the Netherlands in Bucharest. On this occasion, Comanescu hailed the goals presented by the Dutch Presidency of the EU Council and voiced Romania’s full support for its ambitious EU accession agenda. The Romanian official also highlighted the importance of European cooperation and joint action by all community states and institutions in order to effectively address current challenges. The statements were made in the context of the Netherlands having announced among the priotities of its mandate the fight against terrorism and finding solutions to the migrant crisis.




    The Romanian Government and the World Bank signed a memorandum on Monday in Bucharest meant to boost the efficiency of public administration and to support structural reforms. Under the partnership concluded with the WB, the public administration employees will be assessed, without this involving layoffs. Also, a continuous professional training system will be set up and mechanisms will be created in order to prevent corruption, the Romanian PM Dacian Cioloş explained. On Wednesday the Government will continue talks on making adjustments to the new Fiscal Code. Talks will also focus on exempting people without incomes from paying contributions to the public healthcare system.




    The new head of the IMF mission to Romania, Reza Baqir, will visit Bucharest between January 12 –15, in order to be introduced to the Romanian authorities, the IMF resident representative for Romania and Bulgaria, Guillermo Tolosa, said on Monday. He will replace Adrea Schaechter, the head of the IMF mission for Romania, Ukraine and Kosovo, who has ended her two-and-a-half-year mandate. Reza Baqir has been working for the IMF since 2000, as chief of the IMF’s Debt Policy Division.



    (Translated by Elena Enache)

  • The Week in Review, January 4-10

    The Week in Review, January 4-10

    Romanian PM on a visit to Berlin


    The head of the Romanian government Dacian Cioloş and Chancellor Angela Merkel discussed in Berlin on Thursday the Romanian-German relations as well as the prospects of Romanias Schengen accession. The two officials also noted the progress Romania has made in terms of fighting corruption, which in their opinion should reflect in the forthcoming report of the European Commission regarding the Romanian judicial system. Angela Merkel appreciated Romanias importance, among other things, as an economic partner, but warned that some conditions must be created in order for relations in this field to be strengthened. These include, according to the German Chancellor, the improvement of the Romanian judicial system and curbing corruption. As regards Romanias Schengen accession, Dacian Cioloş once again said that Bucharest meets the technical prerequisites for accession, and highlighted that Romania already acts as a Schengen member state in terms of border security. The visit of the Romanian PM ended with a meeting with representatives of the Romanian community in Germany, held at the Romanian Embassy.



    National Bank Governor on the state of the Romanian economy


    A salary raise is inevitable in Romania, in the context of the countrys European integration, but its overlapping with fiscal relaxation measures should have been avoided, the National Bank Governor Mugur Isarescu said. He added that caution should be exercised in raising incomes, so as to make sure that subsequent cutbacks would not be needed. In his opinion, during this election year authorities must be particularly cautious as regards macro-stability, so that economic growth should not be subsequently affected by interest increases, inflation or exchange rate falls. According to Isarescu, last year the national currency, leu, was stable because the macroeconomic context of 2015 was stable and there was no need for large-scale interventions by the National Bank. At present, the international context is more uncertain than it was last year, and higher volatility or larger capital movements may generate temporary imbalances in the market, Mugur Isarescu warned.



    World Bank improves forecast on Romanias economic growth in 2016


    In its latest report on global economic prospects, the World Bank upgrades its forecast on Romanias economic growth rate this year, from 3.2% to 3.9%, and for next year from 3.5% to 4.1&. The institution also improved its estimate regarding the annual GDP increase in Romania for last year, from 3 to 3.6%.


    As regards the region comprising Europe and Central Asia, which includes Romania, but not the Eurozone, the financial institution estimates a 3% growth rate in 2016, and 3.5% in 2017 and 2018. The National Bank of Romania has stated that boosting economic growth in the third quarter of last year was supported by the expansion of private consumption, against the background of higher incomes for the population, improved lending, lower direct taxes and a growing trust in the economy. The institution has decided to maintain the monetary policy interest rate at 1.75% per year, and to reduce the rate of required minimum reserves for the banks foreign currency liabilities.



    Romania under winters assault


    Romania has recently been faced with the first serious snow fall this winter, but, unlike the previous years, the phenomenon has not wreaked havoc with the country road, rail or air traffic. However, several people died because of the extremely low temperatures, which went below minus 20 degrees Celsius in some parts of the country. The bad weather engulfed almost the entire country, and weather specialists issued many warnings and codes for heavy snow, rain, heavy wind and blizzard. Speed restrictions were enforced on railroads, and many trains were delayed. Road and air traffic were faced with some weather problems too, so several flights were delayed and one plane skidded off runway upon landing in Cluj, in central Romania, because, apparently, the runway was full of snow. In the Romanian Black Sea ports, the activity was temporarily suspended because of the heavy wind. Although the layer of snow in Bucharest was not higher than 10 cm, traffic was hampered, because people in charge with removing the snow did not do their job in due time.



    Budget priorities for Romanian Army


    The Romanian Defense Minister, Mihnea Motoc, has announced that the number of exercises in which the Romanian soldiers will participate in 2016 will increase to over 400. Of them, more than 100 will be multinational. Also, the armys operational capacity will be strengthened, as the funds earmarked from the budget for 2016 have been increased. In 2017, the budget of the Army should account for 2% of the GDP, and the rate is to be maintained for at least 10 years, according to the authorities. A member of NATO since 2004, Romania has consolidated its position within the alliance, in particular due to last years activation of two command units: the Multinational Division South-East and the NATO Force Integration Unit. Also, the first elements of the missile defense shield in Deveselu, in southern Romania, were rendered operational.

  • Encouraging Economic Prospects

    Encouraging Economic Prospects

    For Europe and Central Asia, a region that includes Romania, but not the Eurozone, the WB forecasts a 3% growth rate for 2016 and 3.5% for the next two years.



    In its latest report on global economic prospects, released on Wednesday, the World Bank raised its forecasts regarding Romania’s economic growth rate from 3.2 to 3.9% for this year and from 3.5 to 4.1% for 2017. The World Bank thus joins the European Commission and the International Monetary Fund, which in late 2015 made public equally optimistic projections, confirming the positive trend of the Romanian economy in the past few years. The EC estimated, in its autumn forecast, an annual 4.1% increase of Romania’s GDP this year and 3.6% in 2017. The IMF makes similar forecasts, namely an estimated 3.9% growth rate this year, while the Government of Romania expects the economy to grow by around 4%.



    The World Bank also improved its estimates regarding last year’s economic growth, from 3 to 3.6%. For the Europe and Central Asia region, which includes Romania, but not the Eurozone, the World Bank expects a 3% economic growth rate in 2016 and 3.5% for 2017 and 2018. The Bulgarian economy is expected to go up by 2.2% this year and 2.7% next year, Hungary will see 2.5 and 2.7% growth rates in 2016 and 2017 respectively, and Poland is to expect 3.7 and 3.9% growth rates. The World Bank remains optimistic as concerns Romania’s economic growth rate in 2018 as well, when it projects a 4% rise in the GDP.



    On the other hand, the World Bank warns that the region is facing many risks, including a possible deepening of geopolitical tensions, persistent low commodity prices as well as a decline in remittances from developed countries. The international financial institution argues that more rapid growth in the region will depend on supporting a rebound of investment, which is still below the pre-crisis levels.



    In many countries, public investments are constrained by limited fiscal space, and private investments are affected by companies still struggling to work off debts. In some EU Member States, like Bulgaria and Romania, investment is supported by the EU structural funds, but the absorption capacity remains a problem.



    According to the World Bank, one of the regional factors that might affect Romania and Bulgaria is the slow-down in Turkey’s growth. At global level, according to the report, growth will be affected by the problems of the emerging economies, but the GDP increase should see a modest pick-up, from 2.4% in 2015 to 2.9% this year, thanks to the more substantial growth of the developed economies.


    (Translated by Ana Maria Popescu; Edited by Diana Vijeu)

  • January 7, 2016 UPDATE

    January 7, 2016 UPDATE

    German Chancellor Angela Merkel said on Thursday in Berlin that the Romanian-German economic ties will be strengthened on condition that the improvement of the Romanian justice system and the fight against corruption continue. In his turn, the Romanian Prime Minister, Dacian Ciolos, said that Germany was an important strategic partner of Romania and the country’s first commercial partner, with an annual value of bilateral trade of over 20 billion euros. PM Ciolos also said he planned to return to Germany in an attempt to boost economic cooperation between the two countries. The Romanian PM’s visit to Germany was aimed at strengthening bilateral relations and agreeing on common goals on the European agenda, including issues pertaining to migration and to EU foreign policy. Ciolos also met with representatives of the Bundestag Friendship Group and of the Romanian community in Germany.




    The Romanian Foreign Ministry announced that authorities in the neighbouring Bulgaria issued a yellow code alert for heavy snow, glaze and wind for several regions in the country. The Ministry recommends drivers to have their cars equipped for bad weather and to visit the website www.mae.ro for more information. Also, all Romanian citizens travelling abroad are advised to download and consult the ‘Safe Travel’ application, including information, travel recommendations and alerts in case of emergencies. The eastern half of Romania is also under a yellow code alert for heavy snow and sleet, valid until Friday morning. On Thursday, the airport in Cluj-Napoca, in north-western Romania was temporarily closed, after a plane overran a snow-covered runway while landing. Nobody was injured. Civil aviation security investigators are probing the incident.




    French police on Thursday shot dead a man who tried to enter a Paris police station brandishing a butcher’s knife and wearing a suicide vest, which later proved to be fake, news agencies announced. According to the French authorities, the incident is being investigated as a terrorist “attempted murder” of public officials in authority. The incident took place on the day when Paris commemorated one year since the terrorist attacks in the French capital which killed 17 people, including 12 employees of the French satirical publication Charlie Hebdo.




    The World Bank has upgraded its economic growth forecast for Romania, from 3.2 to 3.9% this year, and from 3.5 to 4.1% for 2017. In its latest report on global economic developments issued on Wednesday, the World Bank has also upgraded its forecast on the growth of Romania’s GDP for last year, from 3 to 3.6%. In another development, the National Bank of Romania on Thursday decided to maintain its monetary policy interest rate at 1.75% per year.




    The United States, South Korea and Japan have announced they would stand united after North Korea on Wednesday announced the successful test of a hydrogen bomb. London, Paris, Moscow and even Beijing have condemned the move. The UN Security Council also agreed to impose fresh sanctions on North Korea. The Romanian Foreign Ministry in Bucharest has expressed concern, seeing the announcement as a threat to world peace and security. This is the fourth nuclear test carried out by Pyongyang since 2006. If confirmed, this will be the first hydrogen bomb test.




    Romania’s national football squad continues to rank 16th in the world, according to FIFA’s World Ranking made public on January 7th. With the majority of the top teams enjoying a well-deserved break in the final weeks of 2015, the situation in the top 50 remains largely unchanged from the latest ranking. Sweden have moved up one position into 34th place, Iran have climbed two places into 43rd and Guinea have gained one position in 49th. France continues to be on the 25th position while Switzerland and Albania rank 12th and 38th respectively. The qualification for next year’s Euro 2016 is a great achievement for Romanian football. In their first Euro 2016 match, Romania will face France in the tournament’s opening game on 10th of June on Stade de France stadium. In their next game on 15th June, the Romanians play against Switzerland and then against Albania on 19th June in Lyon.



    (Translated by Elena Enache)